Three Men Sentenced for $11 Million Hawaii Affordable Housing Bribery Scheme
Former businessman and two attorneys received prison terms for bribing a housing official to approve fraudulent development agreements
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- Three men have been sentenced to prison in Hawaii for their roles in a bribery scheme involving affordable housing projects worth over $11 million.
- Former businessman Rajesh Pankaj Budhabhatti, 65, received 90 months, while attorneys Gary Charles Zamber, 56, and Paul Joseph Sulla, 79, received 70 and 60 months respectively.
- The trio bribed Hawaii County housing specialist Alan Scott Rudo to approve development agreements, paying nearly $2 million in bribes and kickbacks.
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Warum es wichtig ist
This case represents a significant public corruption case in Hawaii, where officials conspired to divert affordable housing resources for personal gain. The defendants exploited the affordable housing approval process to enrich themselves while failing to deliver any actual housing units to the community.
Three men have been sentenced to prison in the U.S. for their roles in a multimillion-dollar scheme to bribe a public official in Hawaii in exchange for favourable treatment in affordable housing projects.
Former businessman Rajesh Pankaj Budhabhatti, 65, was sentenced to 90 months in prison, while attorney Gary Charles Zamber, 56, received 70 months. Another attorney, Paul Joseph Sulla, 79, was sentenced to 60 months.
All three were convicted in June 2025 following a jury trial in the District of Hawaii. The case centred on a conspiracy to bribe Alan Scott Rudo, a housing specialist at the Hawaii County Office of Housing and Community Development.
Prosecutors said the men paid bribes and kickbacks to secure approval for development agreements linked to affordable housing projects worth more than $11 million. The trio used their companies to obtain land and affordable housing credits through these agreements.
However, despite promises to build homes for local residents, not a single unit was constructed. The scheme involved nearly $2 million in bribes and kickbacks paid or promised to the public official.
“This wasn’t just corruption – it was a calculated betrayal of the very community the defendants were supposed to serve,” said Assistant Attorney General A. Tysen Duva.
They added: “Instead of building homes for struggling families looking for an onramp to a better life, the defendants built a scheme to enrich themselves, paying millions in bribes and kickbacks while pretending to help those in need. That kind of greed doesn’t just break the law – it erodes trust, damages institutions, robs honest businesses of opportunities and harms American citizens.”
FBI officials described the case as a serious breach of public trust.
“This sentencing marks another step toward accountability for those who pollute the integrity of our government institutions with bribes and kickbacks,” said Special Agent in Charge David Porter.
Rudo pleaded guilty and cooperated with investigators and is yet to be sentenced.
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Alan Scott Rudo will be sentenced in the coming months
Sehr wahrscheinlich · Innerhalb von Monaten
Potential additional charges or investigations may follow
Möglich · Innerhalb von Monaten
Offene Fragen
- When will Alan Scott Rudo be sentenced?
- Were there other participants in the scheme not yet charged?
- What will happen to the affordable housing credits obtained through the scheme?
